Legal advice
a question :
A question came from a reader saying:
I moved to a new job with a lower salary than the previous one, and was issued a residence permit. I was borrowing from a bank, and I made the monthly payments, but I was surprised that the bank blocked my end-of-service bonus from my previous job, then added the amount to pay off the loan and rescheduled the rest of it.
Is he legally entitled to this procedure while at the same time refusing to reduce the value of the remaining installments with the new salary, as the deduction rate has become more than 50% of the salary?
In fact, I was waiting for the end-of-service bonus from my previous employer in order to improve my financial situation, and I used to inquire with the bank from time to time whether there would be a ban on the bonus or not while I updated the data of the new employer.
the answer :
The legal advisor, Dr. Youssef Al-Sharif, stressed the importance of reviewing the loan agreement drawn up between the customer and the bank, because the agreements of some banks in these cases include a stipulation that in the event of termination of services, resignation, or otherwise, the bank has the right to deduct the value of the end-of-service dues from the debt owed by the customer. This procedure is correct on the part of the bank in accordance with those agreements and contracts, and the percentage of deduction from the salary does not apply to it, because all that the bank cares about in this regard is collecting its dues, considering that the guarantee for repayment of the debt is the salary, and in the event of its interruption or change, the bank has the right to deduct its right from the end-of-service reward. Considering that the guarantee, which is the function, has been cut off, and as long as the account is indebted, therefore, when large amounts are deposited, they are deducted from the indebtedness or within the limits of the indebtedness if the deposited amount is greater than the indebtedness, and deducted in full if the indebtedness is greater, and the bank has the right to claim what is due to it after that.
What the bank did is not a ban on end-of-service benefits, as the reader says, but rather a deduction of a debt amount based on the agreement drawn up between you and the bank.
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